Emergency fund calculator
If your pay stopped tomorrow, how long could you cover the essentials? Find out, set a target, and see when you'll reach it.
BudgetHelp's calculators give estimates based on what you enter. They're for education and planning, not financial, tax or investment advice. Check important decisions with a qualified professional.
Why an emergency fund comes first
Without a cushion, every surprise becomes debt. A $900 car repair goes on a credit card at 20%, and suddenly next month's budget is smaller. An emergency fund breaks that cycle. It's the difference between a bad week and a bad year.
Your runway is how many months your savings would cover your essentials. Even one month of runway changes how a crisis feels.
Build it in stages
- Starter cushion: $1,000 to $2,000 for small surprises.
- One month of essentials: enough to handle a short gap in pay.
- Three to six months: real protection against a job loss.
Set up an automatic transfer for payday, even if it's small. Read the full guide: how big should your emergency fund be?
Emergency fund questions
How big should an emergency fund be?
A common guideline is three to six months of essential expenses: housing, utilities, groceries, transport, insurance and minimum debt payments. Aim higher if your income is irregular, you're self-employed, or your household depends on one paycheque.
Where should I keep my emergency fund?
Somewhere safe, separate from your everyday chequing account, and easy to reach within a day or two. Many Canadians use a high-interest savings account. Holding it as cash savings inside a TFSA means the interest isn't taxed. Check that your deposits are covered by CDIC or your province's deposit insurer.
Should I invest my emergency fund?
Usually not in anything that can drop in value. The point of an emergency fund is that it's there in full when you need it, which is often when markets are down too.
What counts as an emergency?
Something unexpected and necessary: a job loss, a car repair you need to get to work, an urgent home or medical cost. Planned costs like holidays or annual fees are better handled with their own savings goals.